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Can I use my CPF for properties with less than 60 years lease left?

02 Aug 2016SOURCE: CPF Board

Content

If you're buying a property with a remaining lease of at least 60 years, you can use your CPF savings for the property purchase. The amount of savings you can use will depend on the type of property as well as loan you are taking. More information can be found
here.

For HDB flats/ private properties with leases of less than 60 years, the following rules apply:

No CPF can be used if the remaining lease of a property is less than 30 years.

A property owner is eligible to use his CPF for the property if his age plus the remaining lease of the property is at least 80 years.

The maximum amount of CPF that can be used is capped at a percentage of the lower of the purchase price or the value of the property at the time of purchase. The percentage is computed based on the remaining lease of the property when the youngest eligible member using CPF reaches age 55, as shown below:

Example

Mary (28 years old) and Adam (30 years old) are intending to buy a property with a remaining lease of 57 years.

Remaining lease of property when purchased: 57 years

Property purchase price: $500,000

Value of property: $520,000

When Mary turns 55, the remaining lease would be 57 – 27 = 30 years.

Maximum amount of CPF that Mary and Adam can use is 30/57 = 0.53 (or 53%) of the lower of the purchase price or value of the flat.

Maximum amount of CPF: 53% of $500,000 = $265,000 from their Ordinary Accounts to pay for their property.

​Here's a calculator to help you determine your eligibility and the maximum amount of CPF you can use to buy a property with remaining lease of less than 60 years, but at least 30 years.

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​​​ABOUT 'ARE YOU READY?'

An initiative of the Central Provident Fund Board, 'Are You Ready?' aims to help you understand the different aspects of your CPF savings as you go through the key stages of your life - from starting work, buying a house to planning for your golden years. It also seeks to give you insights on how you can better manage your finances, grow your nest egg and work towards a secure retirement.